- Inflation is set to cost the typical family of four an additional £1,800 by the end of the year
- Supermarkets say food prices may increase by 5 percent
- Energy price ceiling hike to raise bills for 15 million households by close to £140 per year
- One in two households has started making the cut, our survey shows
We are heading towards a cost of life crisis. Energy bills are rising, food prices are about to rise and tax hikes will soon bite.
The pandemic threw many of our finances to the wind. Many people were forced to go on leave and their incomes saw an overnight drop; Others saved a fortune as the lockdown made commuting and socializing impossible.
But now that we are emerging from the virus crisis, many people are seeing their expenses increasing as soon as they return to the office.
At the same time, inflation is increasing. The Bank of England has warned it could reach 4 per cent by the end of the year, while supermarkets have said food prices could rise 5 per cent.
An analysis of price increases over the past year shows that a used car has cost over £1,600, a tank of fuel is over £10 and a pint of beer is costing around £4
A MoneyMail poll today also revealed that one in two families have started taking cuts due to concerns over rising cost of living.
Our survey, conducted by Consumer Intelligence, found that many people had begun reducing spending within the past one to three months – most fearing rising food and energy prices.
And research exclusive to the Granthshala by the Center for Economics and Business Research (CEBR) also revealed yesterday that inflation will cost the typical family of four an additional £1,800 by the end of this year.
Meanwhile, a retired couple can expect to see an increase in the cost of living by more than £1,100, and a low-income couple could see a cut of up to around £900.
An analysis of price increases in the past year alone shows that the cost of a used car has increased by over £1,600, a tank of fuel is over £10, the price of a pint of beer is creeping closer to £4 and Prosecco A bottle of 55p has grown to £8.
It comes as the new month of October marks the end of the furlough pay support scheme as well as an additional £20-a-week refund for struggling families seeking Universal Credit.
The energy price limit has also gone up, increasing the bills of over 15 million households on average by close to £140 per year.
And the rising cost of bulk gas has seen many suppliers doomed – forcing millions of customers to cheap deals at more expensive tariffs tied to the price range.
So, we will help you to overcome your lack of living. Here, the nation’s top personal finance experts share their tips for managing your money and making significant savings.
back to the basics
After the pandemic disrupted our spending and saving habits, now is a great time to prepare a new household budget.
Our survey found that more than half of those households were saving by not spending on luxuries like food and drink.
Three out of four said their cuts should be enough to stop them from struggling for money.
Laura Suter, head of personal finance at investment broker AJ Bell, says: ‘If you’re facing declining income or rising bills – or a toxic double whammy – you need to hold onto your finances and see what you do. are can spend.
‘It is not a particularly enjoyable job, but it is necessary to avoid getting into financial struggle down the line. You need to look at what you’re doing after tax, then list everything you’re spending on an average month.
‘Once you’ve listed it all, it’ll be clear if you can afford your lifestyle or if you need to cut back.’
Sarah Coles, personal finance analyst at investment service Hargreaves Lansdowne, says: ‘The big advantage of writing everything out this way is that you can see where you’re spending money and not getting a huge amount of money that doesn’t help you identify. best ways to reduce costs.’
She says you have to identify the bills for which you are overpaying. And while there aren’t many cheap energy deals at the moment, you can still save on everything from car insurance to mobile contracts and broadband packages.
Wealth Expert also suggests that canceling the direct debit doesn’t give you enough benefits – a gym membership or membership, for example. And finally, avoid impulsive shopping by waiting an hour or a day before buying something.
My Packed Lunch Saves £30 a Week
Lunch less: Emma Thomson making her own soup
Emma Thomson, 32, It has replaced monthly salon visits to get your nails, eyebrows and eyelashes done with your treatment, saving yourself £65 per month.
She has also stopped buying food deals and juice for lunch every day, increasing her income by another £30 a week, in favor of making her own soup by batches that last for several days. Is.
Emma, who makes personalized gifts for a living, has been struck by the growing business and cost of living, which is why she has to save where she can.
She saw her import duties and postage costs rise during the pandemic, which prompted her to tighten her purse strings.
Emma, who lives in Essex, says: ‘There’s nothing you can do about it so you just need to find ways to cut down.’
Shoppers have been warned that food prices are going to rise due to the supply chain crisis.
Yet Andrew Hager, an expert at personal finance site MoneyCommerce, says thinking about what you spend at the supermarket can lead to big savings.
He says: ‘Food shopping is where a lot of money is wasted – use what you have in your cupboards and freezer.
‘Always plan your meals for the week, make a list and stick to it.’ He also suggests shopping at budget stores Aldi or Lidl.
Research last month by industry magazine The Grocer found that Aldi is the cheapest…